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Answer to Question #63396 in Microeconomics for Digale
Question #63396
A policy analyst has shown that the price elasticity of demand for salt is 0.85 while that of visitation to the national parks is 2.1.
i) Argue whether this scenario is feasible
ii) By what percentage the demand for these two commodities change, if as a result of a tax policy the prices are increased by 8 percent? (3mks)
i) Argue whether this scenario is feasible
ii) By what percentage the demand for these two commodities change, if as a result of a tax policy the prices are increased by 8 percent? (3mks)
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